Sell it - cash it in or Keep it ??

doingwhatican

I am after a bit of advice on our Norwich Union Endowment. We are trying to decide whether to sell it, keep it going or cash it in.
We have just had another statement from them, and it has the usual red alert shortfall bit.
Here is some information about it.

Started May 1989 and matures in May 2014
Monthly Premium £53.70
Target Amount £42000 sum assured £14400

Current Cash in value as of today £18879.00

Projections
4% Growth £28400
6% Growth £30100
8% Growth £31900

It says below that these projections take into account actual performance up until Dec 2007 and includes any final bonus.

The endowment is no longer needed to cover the mortgage as we made that into a repayment about 5 or so years ago and started over paying straight away, so that is coming down nicely. But we currently owe £24500 at the Halifax SVR which is about 7%

Thanks in advance for any guidence.

EdInvestor

doingwhatican wrote: »

Projections
4% Growth £28400
6% Growth £30100
8% Growth £31900

If you cashed it in and used the money to reduce the mortgage, also increasing the mortgage payment by the amount of the endowment premium, you would end up at maturity with 33,142.

Of course you would have paid the mortgage off long before then and that's what I suggest you do as it's a better return than NU can offer and at no risk.

doingwhatican

Just got one offer back of £20949.00 from LSA Group for this endowment - I am expecting a few more back and will post them when I know what they are.